Tech, resource stocks lead broad selloff

SAN FRANCISCO (MarketWatch) - Canadian stocks fell on Monday as investors sold off tech issues and resource stocks despite a rise in commodity prices.

The S&P/TSX Composite (SPTSX) lost 89 points, or 0.7%, to end at 12,542.45. The losses come amid a rise in the benchmark index to a record high close on Thursday.

At the same time, the S&P/TSX 60 Index of blue chips lost 6 points, or 0.8%, to 716.30 and S&P/TSX Venture Composite rose 12 points, or 0.4%, to 2,748.41. Seven of the 10 sectors tracked by the TSX posted losses.

The drop was led by a 1.5% fall in information technology stocks.

Research in Motion (RIM)
RIMM
was the largest decliner by Canadian dollar terms, down C$7.29, or 4.5%, to C$153.31. Open Text Corp.
OTEX, -1.01%
fell 4.2% and Cognos Inc. (CSN)
COGN
fell 3.8%.

Investors will monitor Research in Motion shares on Tuesday, as rival handheld device maker Palm Inc.
PALM, +5.65%
late Monday cut its quarterly financial forecast. Palm cited a delay for the rollout of its Treo 750 PDAs in the U.S. for the revised forecast. See full story.

Nortel Networks (NT)
NT
the session's top volume mover, managed not to succumb to the downward pull in tech stocks. Shares rose 3%.

U.S.-listed tech stocks suffered as well, with the Nasdaq Composite Index
DJC, +0.14%
falling 2.2% as upbeat preliminary results from holiday sales were overshadowed by weaker monthly sales at Wal-Mart Stores Inc.
WMT, +0.30%
and a slide in the U.S. dollar. See Market Snapshot column.

Investors also dumped Canadian energy shares, which fell 0.8%, though oil prices finished up above $60 a barrel. The rise in oil futures followed comments by Saudi Arabia's oil minister supporting another cut in production at OPEC's meeting in December. Natural gas prices also rose. Read Futures Movers.

Financial stocks closed down 0.8% ahead of the beginning of the earnings season for banks on Tuesday.

Bank of Montreal (BMO)
BMO, +0.12%
will mark the start of the season. The company is expected to post earnings of $1.26 a share for the fourth quarter, according to analysts surveyed by Thomson First Call. Its shares fell 0.3% Monday.

The materials sector finished down 0.8%, though gold futures surged more than $11 an ounce. Silver and copper gained ground. Platinum and palladium prices, however, fell. Read Metals Stocks.

But telecom stocks rose, by 0.3%. Telus (T)
TU, +0.06%
gained 0.9%. The company on Friday formally scrapped plans to convert to an income trust following Ottawa's announcement in October that it will seek to end tax exemptions on such trusts.

According to a Globe and Mail newspaper report, Telus said Monday it will still move forward with its strategy for growth and search for other ways to lessen its tax burden. A Telus spokesman was quoted as saying the company also won't "hold any bitterness" against officials in the capital city.

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